"Whirlpool has sought to use its dominant position in the marketplace to make demands that would have prohibited us from offering Whirlpool products to our members at a reasonable price," Sears wrote in an internal memo, according to the WSJ.

Business Insider/Hayley Peterson

Sears will continue to sell its inventory of Whirlpool products until they run out, and Whirlpool will reportedly continue to manufacture some items from Sears' Kenmore brand. However, hundreds of items have already disappeared from Kmart and Sears' online stores.

The retailer's sales have plummeted in recent years. While the end of the Whirlpool relationship was reportedly unrelated to Sears' precarious financial position, other suppliers have expressed concerns regarding the company's ability to stay in business.

In August, Sears reported that sales at stores open for at least a year fell 11.5% in the second quarter. Total revenue fell 22% to $4.37 billion in the most recent quarter, mainly due to store closures.